$10 billion NLNG Train 7 project to buoy Nigeria’s production by 10 million mtpa
By Abimbola Abdullahi
Nigeria’s aspiration on decade of gas agenda may be inching closer to reality as President Muhammadu Buhari performs the ground-breaking ceremony for the much-expected Train 7 belonging to the Nigeria Liquefied Natural Gas (NLNG).
The Train 7 project is expected to increase NLNG’s overall capacity to 30 million tonnes per annum (mtpa) from the current 22 million mtpa, while further adding immense value to the nation.
President Buahari assures of his administration’s move to transform Nigeria into a major gas and industrialised nation with gas playing the key role as revenue earner, fuel for industries and necessary feed for petrochemicals and fertiliser plants through the Decade of Gas initiative.
He enjoined the stakeholders to facilitate the construction of the project so that Train 8 can take off in earnest.
He said: “As minister of Petroleum Resources, I kicked off our first foray in LNG Business in 1978. At the time it was already apparent that Nigeria was mainly a Gas-Rich country with a little oil!
” It therefore gives me great joy to see the organization transform from just a project in the early 90s to a very successful company with over 20 years of responsible operations and steady supply of Liquefied Natural Gas, Liquefied Petroleum Gas and Natural Gas Liquids into the global market. This is proof that Nigeria has great capacity to deliver value to the world by harnessing our natural resources.
“This ground-breaking ceremony to herald the Train 7 project construction, affords me the opportunity to congratulate Nigeria LNG and its shareholders – NNPC, Shell, Total and Eni for proving that a Nigerian company can operate a world class business; safely, profitably and responsibly.
” I am proud that NLNG as the pioneer LNG company in Nigeria, has conscientiously proven the viability of the gas sector over the years, currently contributing about one percent to our country’s GDP; NLNG has generated $114 billion in revenues over the years, paid $9 billion in taxes; $18 billion in dividends to the Federal Government and $15 billion in feed gas purchase. These are commendable accomplishments by the company’s 100 percent Nigerian management team.
“With this level of performance, I can only hope that the company continues to grow starting with this Train 7 project but also positioning Nigeria to thrive through the energy transition.
“As we flag off the Train 7 project today, I look forward to the development and execution of more Gas Projects by the IOCs and Indigenous operators, and more Trains from Nigeria LNG to harness the over 600 trillion cubic feet of proven gas reserves we are endowed with,” he said.
In his address, the Minister of State for Petroleum Resources, Timipre Sylva described NLNG as a ”blessing to the nation”, noting that it has positively complemented crude oil exploration by monetising flared gas and yielding huge revenue to the nation and investors.
Sylva added that since NLNG became operational in 1999, the nation has recorded a drastic reduction in operational flare status from 65 per cent to 12 per cent.
”I boldly say that the ground breaking of Train 7 is a guarantee to every stakeholder of more dividends in terms of further reduction in gas flaring, more revenue to the nation and shareholders, more job opportunities especially at the construction phase and more social investments for the society, ” he said.
Managing Director and Chief Executive Officer of NLNG, Anthony Attah, said the Train 7 will increase NLNG’s overall capacity to 30 million tonnes per annum (mtpa) from the current 22 million mtpa, while further adding immense value to the nation and the people.
Attah noted that the project would stimulate inflow of about 10 billion dollars FDI into Nigeria, create 12,000 direct jobs in Bonny Island and additional 40,000 indirect construction jobs.
He said the project would also further the development of local capacity and businesses through the 100 per cent in-country execution of construction works, fabrications and major procurement.
‘‘Nigeria has ridden on the back of oil for over 50 years, but with this Train 7 project Nigeria is now set and I believe it is now time to fly on the wings of gas,’’ he said.
